CANADA STOCKS-TSX climbs as stimulus comments offset Scotiabank dip

Reuters Staff

3 Min Read

* TSX rises 76.31 points, or 0.60 percent, to 12,772.68
* Scotiabank stumbles after results
* Gold shares fall after bullion price decline
By John Tilak
TORONTO, May 28 (Reuters) - Canada's main stock index
advanced on Tuesday, led by the energy and financial sectors, as
investors were encouraged by signs of support for stimulus
programs from the Japanese and European central banks.
The gains were capped by a decline in Bank of Nova Scotia
, after the lender reported quarterly results, and by a
drop in shares of gold producers after the price of bullion
tumbled.
The European Central Bank can still cut interest rates
further to stimulate the economy if needed and it is vital for
the Bank of Japan to keep long- and short-term interest rates
stable, board members at the respective banks said.
"The market is betting that the stimulus won't be removed
for some time yet," said Fergal Smith, managing market
strategist at Action Economics.
The Toronto Stock Exchange's S&P/TSX composite index
was up 76.31 points, or 0.60 percent, at 12,772.68.
Eight of the 10 main sectors on the index were higher.
A surge in oil prices, supported by rising Middle East risk
and positive investor sentiment, helped energy shares gain 1.2
percent.
Financials, the index's most heavily-weighted sector, added
0.8 percent, with the Scotiabank weakness being offset by gains
in other banks.
Royal Bank of Canada climbed 1.3 percent to C$64.10
and played the biggest role of any single stock in leading the
market higher.
Scotiabank's second-quarter profit rose 9.6 percent, falling
short of expectations, with the increase driven by last year's
acquisition of online lender ING Direct. The stock gave back 0.6
percent to C$59.28.
The lender was the only one of the country's sixth largest
banks to decline and was one of the biggest drags on the market.
The materials sector, which includes mining stocks, was down
0.6 percent after shares of gold miners, lost 1.4 percent.
Goldcorp Inc fell 1.9 percent to C$27.37, and
Barrick Gold Corp slipped 1.7 percent to C$19.72.